The parking lot at 23 Isaac Street and the house at 21 Isaac Street on Thursday, May 31, 2018, were cited for blight last month by the city in Norwalk, Conn. The properties were part of the abandoned Wall Street Place development and are being sought for purchase by real estate owner Jason Milligan. less

The parking lot at 23 Isaac Street and the house at 21 Isaac Street on Thursday, May 31, 2018, were cited for blight last month by the city in Norwalk, Conn. The properties were part of the abandoned Wall ... more

The parking lot at 23 Isaac Street and the house at 21 Isaac Street on Thursday, May 31, 2018, were cited for blight last month by the city in Norwalk, Conn. The properties were part of the abandoned Wall Street Place development and are being sought for purchase by real estate owner Jason Milligan. less

The parking lot at 23 Isaac Street and the house at 21 Isaac Street on Thursday, May 31, 2018, were cited for blight last month by the city in Norwalk, Conn. The properties were part of the abandoned Wall ... more

They cited the Land Disposition Agreement requiring that POKO Partners — the previous owner of the properties — come before the Norwalk Redevelopment Agency for approval before transferring ownership.

The agreement language is to ensure that any future owner has the capability to complete the project per the requirements of the agreement and that “pitfalls that have plagued this development for years do not happen again,” according to a statement released by Mayor Harry Rilling’s office.

“It was — and continues to be — my hope to see the Wall Street Place project completed. I know residents and business owners are not happy with the lack of progress — and I share in their frustration,” Rilling said. “It’s disappointing the property owner would proceed knowingly in direct violation of the agreement, as he received notice of the Land Disposition Agreement transfer requirements again on May 25.”

Rilling said the city is willing to work with any property owners within the first or second phases of the Wall Street Place project, “as long as it is within the bounds of the agreement.” He indicated the city would fight to protect the contractual obligations of the agreement.

“To ensure these contractual obligations are not disregarded we are considering all of our options — including litigation,” Rilling said. “This is not personal, as any party who sought to buy this property is bound to this agreement.”

Milligan, owner of Milligan Real Estate on nearby Belden Avenue, said he closed Thursday on the properties at 21, 23 and 31 Isaac St. as well as those at 83 and 97 Wall St.

“I’m here, ready and willing to talk to the city and the Redevelopment Agency and work with them on the future plans for these properties,” Milligan said Friday afternoon. “The only thing I’m in a rush to do is clean them up, make them safe, make them weather-tight, and for the ones that make sense, I’d like to put them back in use.”

Milligan bought several of the properties from POKO Partners, the Port Chester-based developer which two years ago halted construction on the first phase of Wall Street Place amid financing issues with lender Citibank.

Citibank now owns the former Isaac Street Parking Lot where construction on the first phase of Wall Street Place — 101 apartments with retail and an parking garage — stopped in summer 2016.

Since purchasing the adjacent parcels Thursday, Milligan said he’s removed fencing and garbage from the small parking lot at 23 Isaac St. The lot and adjacent house at 21 Isaac St. were cited with a blight violation alert by the Norwalk Building Department in mid-May.

Milligan said he remains under contract to buy the Fairfield Bank properties at 67 and 69 Wall St. Bank President Dan Berta confirmed in May that the bank planned to sell the properties and remain as a tenant with Milligan as the landlord.

In the statement released by Rilling’s office Friday, Redevelopment Agency Executive Director Timothy Sheehan said the other property transfers “came as a surprise” given the requirements of the Land Disposition Agreement.

“POKO knew any transfer of the property without Agency consent would be a violation of this agreement,” Sheehan said. “This agreement was put in place to protect Norwalk residents and to enhance the quality of life on Wall Street. We are eager to hear what the plans are for this property, as it must be developed in a manner consistent with the agreement. Our goal has always been to grow Wall Street into an active and vibrant area for our community and we hope that happens.”

Sheehan and city officials met with Milligan in the city’s law department on Thursday afternoon after learning that Citibank hadn’t exercised its right-of-first refusal and that Milligan had closed on the properties.

In 2017, an inspection crew at the development site confirmed that Stamford-based real estate developer John McClutchy was exploring taking over the project. Neither he, the city, Citibank nor the Redevelopment Agency have confirmed that.

Milligan and others objected to city and Redevelopment Agency having signed a non-disclosure agreement with Citibank regarding where talks stand to restart Wall Street Place. Rilling said officials signed the agreement reluctantly.

A member of the Wall Street Neighborhood Association, Milligan has called for revitalizing the area. In May, he announced that he had placed $5 million in escrow to purchase the properties. He said his first goal would be to paint and clean the buildings and get parking opened back up.